Advanced Micro Devices this week lowered its revenue guidance for the second quarter by a considerable amount, sending AMD stock plummeting by 10.6 percent to $5.03 in afternoon trading.

The chip maker had earlier projected a 3 percent sequential increase in revenue for its quarter ending on June 30 but announced late Monday that it is now expecting an 11 percent drop in sales from the first quarter of 2012, when AMD reported sales of $1.59 billion.

AMD is scheduled to report its second-quarter earnings on July 19, two days after the company's larger rival Intel reports.

The company cited "business conditions that materialized late in the second quarter" for the anticipated decline in revenue for the quarter, specifically citing "softer-than-expected channel sales in China and Europe" and weak consumer demand for computing products that was affecting AMD's OEM partners.

In contrast to Intel, AMD has struggled to fully emerge from the worldwide economic recession and the shorter term impact on microprocessor sales from last year's hard disk drive shortage caused by catastrophic flooding in Thailand.

AMD did say its operating expenses have improved in the second quarter as "a result of tightly controlled expenses in the quarter." The chip maker said last November that it planned to lay off about 10 percent of its global workforce by the end of this year's first quarter, or about 1,100 employees.

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About the Author

Damon Poeter got his start in journalism working for the English-language daily newspaper The Nation in Bangkok, Thailand. He covered everything from local news to sports and entertainment before settling on technology in the mid-2000s. Prior to joining PCMag, Damon worked at CRN and the Gilroy Dispatch. He has also written for the San Francisco Ch... See Full Bio

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